An assessment of the anti-money laundering (AML) / counter-terrorist financing (CFT) measures in place in Jamaica: ratings, key findings and priority actions.

1. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017 1
Anti-money laundering and counter-
terrorist financing (AML/CFT)
measures in Jamaica
Fourth Round Mutual Evaluation
Key findings, ratings and priority actions
January 2017
www.fatf-gafi.org/publications/mutualevaluations/documents/mer-jamaica-2017.html

2. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Ratings – Effectiveness (1/3)
2
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Jamaica has
achieved this
objective
1. ML and TF risks are understood and, where appropriate,
actions co-ordinated domestically to combat ML and TF
Moderate
2. International co-operation delivers appropriate information,
financial intelligence, and evidence, and facilitates action
against criminals and their assets
Moderate
3. Supervisors appropriately supervise, monitor and regulate
financial institutions and designated non-financial
businesses and professions (DNFBPs) for compliance with
AML/CFT requirements commensurate with their risks.
Moderate
4. Financial institutions and DNFBPs adequately apply AML/CFT
preventive measures commensurate with their risks, and
report suspicious transactions.
Low

3. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017 3
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Jamaica has
achieved this
objective
5. Legal persons and arrangements are prevented from misuse
for money laundering or terrorist financing, and information
on their beneficial ownership is available to competent
authorities without impediments
Low
6. Financial intelligence and all other relevant information are
appropriately used by competent authorities for money
laundering and terrorist financing investigations.
Moderate
7. Money laundering offences and activities are investigated
and offenders are prosecuted and subject to effective,
proportionate and dissuasive sanctions
Low
8. Proceeds and instrumentalities of crime are confiscated. Substantial
Ratings – Effectiveness (2/3)

4. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017 4
Immediate outcome of an effective system to combat money
laundering (ML) and terrorist financing (TF)
Extent to
which
Jamaica has
achieved this
objective
9. Terrorist financing offences and activities are investigated
and persons who finance terrorism are prosecuted and
subject to effective, proportionate and dissuasive sanctions.
Low
10. Terrorists, terrorist organisations and terrorist financiers are
prevented from raising, moving and using funds, and from
abusing the non-profit sector.
Low
11. Persons and entities involved in the proliferation of weapons
of mass destruction are prevented from raising, moving and
using funds, consistent with the relevant United Nations
Security Council Resolutions.
Low
Ratings – Effectiveness (3/3)

5. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017 5
Ratings – Effectiveness
0 1
46
High
Substantial
Moderate
Low

6. 6
Ratings – technical compliance
(1/5)
September
2016
AML/CFT POLICIES AND COORDINATION
1. Assessing risks & applying a risk-based approach ParPa Pa Par Partially compliant
2. National cooperation and coordination ParPa Pa Par Partially compliant
MONEY LAUNDERING AND CONFISCATION
3. Money laundering offence LarLarLarLar Largely compliant
4. Confiscation and provisional measures LarLarLarLar Largely compliant
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
5. Terrorist financing offence LarLarLarLar Largely compliant
6. Targeted financial sanctions related to terrorism & terrorist
financing NonNo No Non Non compliant
7. Targeted financial sanctions related to proliferation ParPa Pa Par Partially compliant
8. Non-profit organisations NonNo No Non Non compliant

7. 7
Ratings – technical compliance
(2/5)
September
2016
PREVENTIVE MEASURES
9. Financial institution secrecy laws ComCo ComCo Compliant
Customer due diligence and record keeping
10. Customer due diligence ParPa ParPa Partially compliant
11. Record keeping ParPa ParPa Partially compliant
Additional measures for specific customers and activities
12. Politically exposed persons ParPa ParPa Partially compliant
13. Correspondent banking ComCo ComCo Compliant
14. Money or value transfer services ParPa ParPa Partially compliant
15. New technologies ComCo ComCo Compliant
16. Wire transfers LarLarLarLar Largely compliant

8. 8
Ratings – technical compliance
(3/5)
September
2016
PREVENTIVE MEASURES (continued)
Reliance, Controls and Financial Groups
17. Reliance on third parties ParParPa Pa Partially compliant
18. Internal controls and foreign branches and subsidiaries ParPa Pa Pa Partially compliant
19. Higher-risk countries ParPa Pa Pa Partially compliant
Reporting of suspicious transactions
20. Reporting of suspicious transactions ComCo Co Com Compliant
21. Tipping-off and confidentiality ParPa Pa Par Partially compliant
Designated non-financial Businesses and Professions (DNFBPs)
22. DNFBPs: Customer due diligence ParPa Pa Par Partially compliant
23. DNFBPs: Other measures ParPa Pa Par Partially compliant
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL
PERSONS AND ARRANGEMENTS
24. Transparency and beneficial ownership of legal persons ParParPa Pa Partially compliant
25. Transparency and beneficial ownership of legal
arrangements ParPa Pa Pa Partially compliant

9. 9
Ratings – technical compliance
(4/5)
September
2016
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES
Regulation and Supervision
26. Regulation and supervision of financial institutions ParParPa Pa Partially compliant
27. Powers of supervisors ParParPa Pa Partially compliant
28. Regulation and supervision of DNFBPs ParParPa Pa Partially compliant
Operational and Law Enforcement
29. Financial intelligence units LarLarLarLar Largely compliant
30. Responsibilities of law enforcement and investigative
authorities LarLarLarLar Largely compliant
31. Powers of law enforcement and investigative authorities LarLarLarLar Largely compliant
32. Cash couriers LarLarLarLar Largely compliant

10. 10
Ratings – technical compliance
(5/5)
September
2016
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES (continued)
General Requirements
33. Statistics Pa ParPa Par Partially compliant
34. Guidance and feedback LarLarLarLar Largely compliant
Sanctions
35. Sanctions Pa ParPa Par Partially compliant
INTERNATIONAL COOPERATION
36. International instruments LarLarLarLar Largely compliant
37. Mutual legal assistance Co ComCo Com Compliant
38. Mutual legal assistance: freezing and confiscation LarLarLarLar Largely compliant
39. Extradition Co ComCo Com Compliant
40. Other forms of international cooperation Pa ParPa Par Partially compliant

11. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017 11
Ratings – technical compliance
6
11
21
2
Compliant
Largely compliant
Partially compliant
Non compliant

12. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Key findings
 Jamaica does not have a completed National Risk Assessment (NRA), but as a
result of the National Security Policy (NSP) and subsequent work done by the
National Anti-Money Laundering Committee (NAMLC), there is a reasonable
level of understanding of ML/TF risk at the country level and mitigation
strategies have been put in place to address those risks. However, greater effort
needs to be made to involve all stakeholders.
 Jamaica cooperates with its international law enforcement counterparts, which
has resulted in the prosecution and conviction of persons in some instances.
Mutual legal assistance and extradition mechanisms are also used.
 In general, there is a high level of cooperation amongst domestic competent
authorities, which is facilitated by NAMLC. ML/TF measures are being
implemented by the competent authorities some of whom have implemented a
risk-based approach.
 Jamaica’s AML/CFT supervisory regime for financial institutions is adequate.
There is a fairly robust licensing regime in place which deters criminals from
holding senior management positions or becoming significant shareholders.
The risk based approach (RBA) is still in its embryonic stage.
12
September
2016

13. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Key findings
13
 The Bank of Jamaica (BOJ) has not yet revised its AML/CFT Guidance Note to
incorporate a risk based approach in line with FATF Recommendations and local
legislation. The AML/CFT regime does not extend to the microfinance sector
which makes it vulnerable to ML/TF abuse.
 The NSP has identified attorneys as facilitators who are considered a high risk of
ML/TF. The General Legal Council (GLC) has been established and appears
willing to implement a robust system of AML/CFT compliance for attorneys that
conduct transactions specified by the FATF Recommendations. However, the
current injunction filed by the Jamaica Bar Association (JBA) against the
implementation of the law in this regard increases the vulnerability of the
sector to ML/TF abuse.
 DNFIs/DNFBPs are currently not subject to the Terrorism Prevention Act (TPA)
and Regulations made thereunder.
 Jamaica does not have sufficient measures in place to prevent the misuse of
legal persons, legal arrangements and micro finance institutions for ML/TF.
September
2016

14. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Key findings
 The FIU has been able to execute its mandate to assist with the conduct of
financial investigations, and the intelligence analyzed and disseminated by the
FIU is used by LEAs and other competent authorities as a basis to conduct joint
operations, audits and inspections. However, there should be more statistical
data on how the analysis and disseminated STRs support the system of financial
investigations.
 Financial intelligence and other relevant information can be directly accessed in
real time by various competent authorities to facilitate investigations of
predicate offences, trace assets and identify trends and typologies.
 There is insufficient coordination in the Jamaica Resident Magistrate’s (RM)
Court system with regard to pursuing ML/TF prosecutions. There is a tendency
by Clerks not to put these matters forward and settle for the prosecution of the
predicate offence or cash forfeiture aspect. Issues such as insufficient training in
ML/TF matters, lack of priority of ML/TF cases, incomplete investigations and
reticence on the part of the RM to deal with ML/TF matters, which tend to be
more complicated, contribute to this situation.
14
September
2016

15. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Key findings
15
 Jamaica has pursued ‘taking the profit out of crime’ as a national policy.
However, there is a need to assess how consistent confiscation and
seizures are in keeping with the country’s ML/TF risk.
 In respect to legal persons, sanctions for ML/TF offences while
considered proportionate are not effective or dissuasive.
 The mechanisms to deal with terrorism and TF investigations are not
effective.
 A TF threat assessment of the NPO sector has not been undertaken.
The sector is yet to develop a risk based CFT regime.
 Jamaica has very limited experience in TF investigations and
prosecutions and is yet to secure any convictions for the TF offence.
 Jamaica has only recently established a dedicated unit to investigate TF
offences in the form of the Counter-Terrorism and Organized Crime
Branch (CTOC) within the Jamaica Constabulary Force (JCF), which has
affected their level of effectiveness in dealing with TF matters.
September
2016

16. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Key findings
 Jamaica has commenced initiatives to formulate procedures to
address proliferation financing (PF) risks. However, the measures to
deal with PF will have to be developed substantially to meet the UN
Security Council Resolutions’ (UNSCRs) requirements and FATF’s
Recommendations.
 There is a delay in communicating all UN designations to FIs.
Additionally, there are delays in the implementation of targeted
financial sanctions (TFS) for terrorism and PF.
 FIs which are part of financial groups understand ML/TF risks and
have implemented preventative measures through the adoption of
group compliance programmes, compliance and Internal Audit
functions.
16
September
2016

17. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Priority Actions for Jamaica to
strengthen its AML/CFT System
17
 Jamaica should complete its NRA2 so it can fully identify, assess,
understand and mitigate its ML/TF risks and the results should be shared
with financial institutions, DNFIs/DNFBPs and other relevant stakeholders.
 Upon completion of the NRA, mechanisms should be developed to
periodically review the results of this assessment, ensure that all relevant
public and private sector stakeholders are sufficiently engaged in the
process and that results of these reviews are shared with the private
sector (FIs and DNFIs/DNFBPs).
 Jamaica should identify, and assess, its ML/TF risks associated with its
financial, DNFIs/DNFBPs and NPO sectors, the use of legal persons and
arrangements, cross-border activities, tax evasion and PF, and put
measures in place to mitigate these risks.
 Jamaica should formulate national policies and strategies related to
ML/TF/PF, including processes for monitoring effectiveness based on
identified and assessed risks.September
2016

18. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Priority Actions for Jamaica to
strengthen its AML/CFT System
 Jamaica should consider establishing a dedicated criminal court to
deal exclusively with ML related cases so that they can be disposed
of in a timely manner. Jamaica should also ensure that adequate
resources and properly trained personnel to prosecute ML offences
are provided for.
 Jamaica should ensure that financial intelligence is better utilized
for ML and TF investigations.
 Jamaica should extend its AML/CFT regime to include the
microfinance sector. A supervisory authority should be identified
for the microfinance sector to ensure compliance with AML/CFT
requirements.
 Jamaica should focus more on pursuing ML investigations and
prosecutions to secure successful convictions as opposed to
predicate offences.
18
September
2016

19. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Priority Actions for Jamaica to
strengthen its AML/CFT System
 Jamaica’s judicial system needs to be assessed and reviewed to ensure that
ML/TF offences and related matters are sufficiently prioritised.
 Jamaica should establish policies and mechanisms to implement all UN
targeted financial sanctions to combat TF and the financing of proliferation
without delay and monitor the reporting of entities for compliance with
the targeted financial sanctions.
 Jamaica should take measures to assess the risks of ML/TF posed by the
misuse of legal persons and legal arrangements. Jamaica should also take
measures to ensure that beneficial ownership information for legal
persons is maintained and available. Obligations and associated sanctions
should be imposed on trustees in relation to the keeping and maintenance
of information on trustees, settlors, beneficiaries and protector (if any).
 Jamaica should impose sanctions that are effective, proportionate and
dissuasive against natural and legal persons following convictions for ML
offences.
19
September
2016

20. Anti-money laundering and counter-terrorist financing measures in Jamaica – Mutual Evaluation Report – January 2017
Priority Actions for Jamaica to
strengthen its AML/CFT System
 Jamaica should bring all DNFIs/DNFBPs under the AML/CFT regime
and ensure that both supervisors and DNFIs/DNFBPs understand
the ML/TF risk posed by this sector.
 Jamaica should ensure proper supervision of DNFIs/DNFBPs based
on a risk based approach and ensure all DNFIs/DNFBPs are
effectively implementing their AML/CFT obligations and risk
mitigating measures.
 The TPA should be extended to all DNFIs/DNFBPs.
 The BOJ and FSC should enhance its supervisory practices to enable
the full implementation of consolidated supervision.
 BOJ should issue its risk based AML/CFT Guideline.
 FSC should establish and implement a consolidated supervision
framework.
 The FSC should undertake thematic AML/CFT studies by sector and
types of institutions to improve understanding of sector risks.
20
September
2016